Hydro Protocol is a platform for collateralized assets on Injective Network. Hydro is the first and only native liquidity staking derivatives (LSD) protocol on Injective Network, aiming to bring new optimizations and utility levels to the ecosystem. Hydro is expected to become a significant force in building the LSDfi ecosystem on Injective.

Importance of Hydro

The Localized Liquidity Staking Derivatives (LSD) protocol is a game-changing protocol. While other projects use IBC, Hydro Protocol is committed to the growth of Injective and remains aligned with its success. Hydro Protocol has always believed that Injective is the cornerstone of LSDfi potential, leading adoption and practicality on the DeFi platform. Hydro Protocol not only focuses on ordinary LSD but also aims to enter the LSDFi field.

Main Features

LSD

Liquid Staking Derivatives (LSD) will be the main product of Hydro Protocol, providing liquidity staking. On LSD, users can deposit INJ tokens in exchange for hINJ tokens and start earning staking rewards. hINJ is the liquidity staking token of Hydro Protocol, which provides instant staking yield and opens up liquidity for other DeFi protocols. By minting their own hINJ, users unlock endless opportunities within the Injective ecosystem. Hydro Protocol collaborates with different projects to ensure that hINJ becomes the collateral standard across the entire network.

Mining

The mining feature of Hydro Protocol will be one of the first use cases for users to use hINJ tokens on Injective Network. By depositing hINJ, users will be able to earn the maximum token rewards.

Automatic Compounding

Hydro Protocol allows users to maximize their staking yield and amplify their rewards on INJ assets through automatic compounding. In traditional staking models, users need to manually claim INJ rewards and then restake to achieve compounding. This periodic onboarding and manual restaking inconvenience also incurs additional network fees and consumes time and energy.

Real Yield Aggregator

Hydro Protocol will launch a real yield aggregator on Hydro. LSDs are popular in the current market, but their utility for wealth accumulation is limited as yield opportunities are inflationary and diminish in value. LSDs can only grow to a certain extent without yield opportunities, and that’s where LSDFi (Liquidity Staking Derivatives Finance) truly takes off. And that’s where Hydro’s real yield aggregator comes into play. The real yield aggregator created by the Hydro team can aggregate real yields from various sources into a comprehensive index and distribute them to users. Hydro’s real yield aggregator is low-risk, diversified, and easy to use.

Tokenomics

HDRO Token

The HDRO token is the governance and utility token on Hydro Protocol. The token is carefully designed to be deflationary and accumulate value. HDRO has a maximum supply of 1 billion tokens, aiming to benefit HDRO holders and stakers. A value accumulation mechanism has been implemented to leverage real yields and proportionally used for HDRO buybacks to capture value and distribute it to HDRO holders for the benefit of stakers.

Importance of HDRO

The value of HDRO grows with the success of Hydro Protocol.
Holders have the right to receive 30% of the protocol’s redistribution fees.
Plans to incorporate it into index derivatives of real income as part of a real income aggregator.
Governance token of Hydro.
$HDRO can enhance the yield of farming activities.

Token Distribution

Roadmap

Hydro Protocol is expected to launch in September 2023.

2023 Q3/4 – Launch

TGE (September 2023)
CEX/DEX listing
Expand utility on Injective

2024 – Develop LSDFi on Injective

Real income aggregator
Increase adoption of third-party protocols

Summary

Liquid staking derivatives are an important theme in DeFi, and Hydro is at the center, aiming to provide liquidity, utility, and wealth for users. In Hydro’s vision, Hydro will become the first and only native LSD protocol on the Injective Network, making liquid staking tokens (LST) the standard for building the LSDFi ecosystem on Injective. Hydro has planned the next step of Injective’s LSDFi growth strategy, which is to launch the functionality of a real income aggregator.

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Hydro Protocol The Ultimate Staking Platform based on Injective